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Swedish CPIF at 1991 High

SWEDEN
MNI (London)

MARCH CPIF +6.1% Y/Y, +1.7% M/M; FEB +4.5% Y/Y

  • Swedish inflation hit +6.1% y/y in March, a 1991 high. This was up 1.6pp compared to Feb and significantly outpaced the forecast of +5.5% y/y.
  • Core CPIF rose to +4.1% y/y in March from +3.4% y/y.
  • Electricity and fuel prices were the key upwards drivers, contributing 0.8pp to the m/m increase, followed by food (+0.3pp).
  • The Riksbank is due to meet on April 27 for their second meeting of the year, following the dovish February decision.
  • Some analysts were already starting to look for an April hike and this higher inflation print is likely to increase market expectations of a more activist Riksbank.

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